As Seoul home prices surge, listings for dwellings (sales, jeonse, and monthly rent) are rapidly declining. In the past 10 days this month, 22 of the capital's 25 districts saw listings fall by more than 5%. With uncertainty spreading amid rising home prices and the possibility of additional regulations, homeowners looking to lease out on jeonse or monthly rent or to sell are seen postponing decisions. Market experts also said a considerable number likely already completed transactions in September to avoid additional regulations.
According to the Ministry of Land, Infrastructure and Transport and apartment transaction platform Asil on the 13th, apartment listings fell across all 25 Seoul districts on Oct. 10 compared with the 30th of the previous month.
In 10 days, 22 districts saw declines of more than 5%. Except for Jung District (-3.7%), Gangbuk District (-3.5%), and Songpa District (-2.3%), all districts had listings drop by more than 5%. Dobong District had the largest decline, with listings down 9.9%. Gwangjin District (-9.8%) and Seongdong District (-9.6%) also saw listings fall by nearly 10%. Jongno District (-8.3%), Mapo District (-8.0%), and Gwanak District (-7.8%) also had relatively large declines.
The decline in real estate listings in Seoul is analyzed as stemming from growing uncertainty due to recent home price gains and an expected government announcement of additional regulations.
Yang Ji-young, a senior adviser at Shinhan Premier Pathfinder, said, "After the Sept. 7 supply plan was announced, the market expected additional regulations, and most people who planned to sell their homes had already completed the transaction by then," adding, "Since October, there is a possibility that home prices will rise further, so listings have been withdrawn."
Ham Young-jin, head of the Woori Bank Real Estate Research Lab, said, "As expectations for rising home prices grow, it appears more people are pulling listings and deciding to wait and see."
Meanwhile, Seoul apartment prices continue to rise. According to Korea Real Estate Board (REB) statistics, Seoul apartment prices have risen for 36 consecutive weeks. As of Sept. 29, the most recent data, the weekly growth rate for Seoul apartment sales prices was 0.27%, more than triple the rate four weeks earlier (0.08%). The "Han River belt" districts of Seongdong (0.78%), Mapo (0.69%), and Gwangjin (0.65%) are posting steep increases.
The government, the ruling party, and the presidential office held a high-level party-government consultation on the 12th and decided to roll out measures to stabilize the real estate market within this week. Tighter loan regulations and an expansion of regulated areas are expected to be announced.